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Council approves purchase of 7955 Wallace Road for utilities storage and operations
Summary
Eden Prairie approved a $3.05 million purchase of Building 1 at the former Danfoss campus (7955 Wallace Road) to provide indoor storage and a centralized operations site for the city’s utilities division; funding will come from the capital improvement program and utilities enterprise reserves with no impact to the general fund or tax levy.
The Eden Prairie City Council on Oct. 21 approved a purchase agreement for 7955 Wallace Road, the westernmost building on the former Danfoss campus, to house the city’s utilities division equipment and operations.
Public Works Director (Ellis) told the council the city currently stores millions of dollars of utility equipment outdoors at multiple locations, accelerating wear, increasing maintenance and raising winterization and vermin risks. The Danfoss Building 1 offers roughly 26,000 square feet of indoor storage, multiple 16‑foot garage doors, high‑capacity electric service (installed when Danfoss used the building for high‑energy testing) and an existing industrial zoning designation suited to municipal operations.
Ellis said the building is “move‑in ready” and that required immediate improvements are minimal (secure card readers and similar access controls). He noted that the building’s high‑power electrical service dovetails with the city’s transition toward an electric fleet and that the site’s highway access would improve operational efficiency for field crews.
The purchase price in the agreement is $3,050,000. Funding combines $1,770,000 previously programmed in the city’s 2025–2034 capital improvement plan for a utilities garage and $1,280,000 from utilities enterprise excess reserves. Staff emphasized the purchase will not affect the general fund or the city’s tax levy.
Ellis said comparable recent sales in the West Metro show this acquisition is at or below recent per‑square‑foot prices for industrial buildings in the market area, and that such well‑located industrial parcels with the needed clearances and zoning are rare.
The council moved to approve the purchase agreement and authorized the city manager to execute closing documents; the motion passed 5‑0.
Staff will complete closing steps, install security and operational modifications and begin phased occupancy to consolidate utilities field operations alongside the city’s parks, streets and fleet maintenance campus.
